SEC. 6.64. AS-NEEDED CONSTRUCTION CONTRACTS.

A Department Head is authorized to execute Contracts for construction services on an as-needed basis, with definite or indefinite quantities of work. in accordance with the following procedures:

(a) General As-Needed Contracts. A Department Head may issue an Advertisement For Bids for construction services on an as-needed basis, with work to be assigned by contract service orders based on costs contained in the Bid. The as-needed Contract shall provide for a not-to-exceed amount and an expiration term of not more than five years, including all modifications. The Department Head shall not issue any new contract service order after four years from the date the Contract is certified by the Controller. Additionally, the cumulative modifications to the as-needed Contract shall result in a contract sum not to exceed 150% of the original Contract amount. No contract service order or multiple contract service orders for any single Public Work, whether in one phase or multiple phases, shall cumulatively exceed the Threshold Amount. A department may issue or modify any contract service order(s) to exceed the Threshold Amount only upon the Department Head's written determination establishing the need for the work and the justification for proceeding under this Section 6.64 rather than by formal competitive process.

(b) Master As-Needed Agreements. The Department Head may execute master as-needed agreements, on an "if-and-as-needed" basis with Contractors who can establish experience, expertise, and quality of work. Master as-needed agreements shall provide for an expiration term of not more than five years from the date of certification by the Controller, including all modifications. A Contractor may apply for a master as-needed

agreement under this subsection 6.64(b) by providing the department with a statement of its experience and qualifications and other information as requested by the department. Within 60 days of receiving such information, the department shall advise the applicant of its eligibility for an award of a master as-needed agreement.

For performance of specific tasks, the department shall seek Quotations from at least three of the Contractors with master as-needed agreements. The department shall issue a contract service order for the work to the Contractor submitting the lowest Quotation, except as provided below. In the event that the department is unable to obtain three Quotations, the Department Head shall base the issuance of the contract service order on the Quote or Quotes received. The Department Head may reject any and all Quotations and request new Quotations. No contract service order or multiple contract service orders for any single Public Work, whether in one phase or multiple phases, shall cumulatively exceed the Threshold Amount, including all modifications. Additionally, the cumulative modifications to an as-needed agreement shall not exceed 150% of the original Contract

amount.

(c) Except as provided below, all of the requirements of this Chapter 6 and Administrative Code Chapter 14B and Labor and Employment Code Articles 131 and 132 apply to as-needed Contracts. Departments may designate specific as-needed contracts as limited set asides for Micro-LBEs as provided under Chapter 14B of the Administrative Code.

(1) The Department Head may authorize the Contractor to file corporate surety bonds as required in subsection 6.22(a) after execution of the asneeded Contract, but prior to the execution of any contract service order. The bonds shall be for a sum of not less than 100% of the cumulative value of all issued contract service orders under the as-needed Contract or at least 25% of the Contract amount, whichever is greater.

(2) The Department Head may require the Contractor to include a subcontractor list in conformance with subsection 6.21(a) and Chapter 14B of the Administrative Code at time of Bid or at the time of contract service order, as appropriate to the Contract.

(d) Department Heads shall report quarterly to the Board of Supervisors regarding the department's use of as-needed Contracts and the actual amount of participation of LBE subcontractors or subconsultants to determine whether LBE Subcontractor Participation Requirements are being met on as-needed Contracts. Such reports shall be referred to a Board committee for public hearing.

(Added by Ord. 286-99, File No. 991645, App. 11/5/99; amended by Ord. 58-05, File No. 041571, App. 4/1/2005; Ord. 108-15, File No. 150175, App. 7/2/2015, Eff. 8/1/2015)